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PennantPark (PNNT) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
ZACKS· 2025-05-12 23:01
Core Insights - PennantPark (PNNT) reported revenue of $30.66 million for the quarter ended March 2025, marking a year-over-year decline of 14.8% and a surprise of -8.26% compared to the Zacks Consensus Estimate of $33.43 million [1] - The earnings per share (EPS) for the same period was $0.18, down from $0.22 a year ago, with an EPS surprise of -5.26% against the consensus estimate of $0.19 [1] Financial Performance Metrics - Investment income from non-controlled, non-affiliated investments was $0.12 million, significantly lower than the average estimate of $0.69 million based on three analysts [4] - Dividend income from controlled, affiliated investments was reported at $5.58 million, exceeding the average estimate of $5.12 million based on two analysts [4] - Dividend income from non-controlled, non-affiliated investments was $0.50 million, slightly below the estimated $0.55 million by two analysts [4] Stock Performance - Over the past month, shares of PennantPark have returned +5.3%, outperforming the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]
PennantPark (PNNT) Q2 Earnings and Revenues Miss Estimates
ZACKS· 2025-05-12 22:20
PennantPark (PNNT) came out with quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.26%. A quarter ago, it was expected that this business development company would post earnings of $0.20 per share when it actually produced earnings of $0.20, delivering no surprise.Over the last four quarters, the ...
PennantPark Investment (PNNT) - 2025 Q2 - Quarterly Report
2025-05-12 20:06
Portfolio Overview - As of March 31, 2025, the portfolio totaled $1,213.6 million, with 41% in first lien secured debt and a weighted average yield on interest-bearing debt investments of 12.0%[234] - As of September 30, 2024, the portfolio totaled $1,328.1 million, with 50% in first lien secured debt and a weighted average yield on interest-bearing debt investments of 12.3%[235] - The average investment size in the overall portfolio was $6.9 million as of March 31, 2025[234] - PSLF's portfolio as of March 31, 2025, totaled $1,392.9 million, with a weighted average yield on interest-bearing debt investments of 10.4%[239] - As of March 31, 2025, the PennantPark Senior Loan Fund (PSLF) had total assets of $1,463.5 million, an increase from $1,073.4 million as of September 30, 2024[293] - The investment portfolio of PSLF consisted of debt investments in 119 portfolio companies as of March 31, 2025, compared to 102 companies as of September 30, 2024[293] Investment Activity - For the three months ended March 31, 2025, the company invested $176.8 million in three new and 52 existing portfolio companies, with a weighted average yield on debt investments of 10.7%[236] - For the three months ended March 31, 2024, the company invested $188.5 million in six new and 43 existing portfolio companies, with a weighted average yield of 11.7%[237] - For the six months ended March 31, 2025, PSLF invested $523.7 million in 23 new and 57 existing portfolio companies[240] - For the six months ended March 31, 2024, PSLF's total investments amounted to $194.2 million, with a weighted average yield of 12.2%[241] Financial Performance - For the three and six months ended March 31, 2025, investment income was $30.7 million and $64.9 million, respectively, a decrease from $36.0 million and $70.3 million for the same periods in 2024[270] - For the three and six months ended March 31, 2025, expenses totaled $19.2 million and $40.4 million, respectively, down from $21.7 million and $40.4 million in 2024[271] - Net investment income for the three and six months ended March 31, 2025, was $11.4 million and $24.4 million, or $0.18 and $0.37 per share, compared to $14.3 million and $29.9 million, or $0.22 and $0.46 per share in 2024[272] - For the three and six months ended March 31, 2025, net realized losses totaled $(27.7) million and $(30.3) million, compared to $(31.0) million and $(29.2) million in 2024[273] - The net change in unrealized appreciation on investments for the three and six months ended March 31, 2025, was $27.1 million and $29.5 million, respectively, down from $33.2 million and $28.3 million in 2024[274] Debt and Financing - The company expects to continue using debt capital and proceeds from public and private offerings to finance investment objectives[228] - The Truist Credit Facility had outstanding borrowings of $314.5 million as of March 31, 2025, with a weighted average interest rate of 6.7%[280] - PSLF entered into a $400.0 million senior secured revolving credit facility, increased from $325.0 million in August 2024[296] - The company has not engaged in interest rate hedging activities during the reporting periods, which may expose it to risks associated with interest rate fluctuations[326] Cash and Liquidity - As of March 31, 2025, the company had cash and cash equivalents of $32.6 million, down from $49.9 million as of September 30, 2024[289] - For the six months ended March 31, 2025, operating activities provided cash of $161.1 million, while financing activities used cash of $178.3 million, primarily for credit facility repayments and stockholder distributions[290] - Cash and cash equivalents increased to $62,201,000 as of March 31, 2025, from $36,595,000 as of September 30, 2024, reflecting a growth of 70%[309] Distributions - The company must distribute dividends equal to at least 90% of its net ordinary income and realized net short-term capital gains to maintain its RIC tax election[259] - The company declared distributions of $0.24 per share for the three months ended March 31, 2025, compared to $0.21 per share in the same period of 2024, reflecting a 14.3% increase[314] - The company transitioned from quarterly to monthly distributions effective October 2023, with future monthly distributions determined by the board of directors[315] Valuation and Accounting - PSLF's portfolio generally consists of illiquid securities, and the board of directors undertakes a multi-step valuation process each quarter for investments without readily available market quotations[246] - The company has adopted ASC 825-10 for the Truist Credit Facility, incurring $0.3 million in expenses related to amendment costs for the three and six months ended March 31, 2025[252] - The company has adopted ASU 2022-03, which clarifies fair value measurement disclosures, with no material impact on consolidated financial statements[320] - The FASB issued ASU 2023-07, effective for fiscal years beginning after December 15, 2023, which will enhance segment disclosure requirements, currently under evaluation by the company[321] Market and Sector Analysis - The average coupon rates for various sectors include 11.55% for software and 10.69% for transportation, indicating a diverse interest rate environment across industries[303] - The healthcare, education, and childcare sector shows a notable interest rate of 10.65% for NORA Acquisition, LLC, highlighting the sector's investment attractiveness[303] - The company has a diverse portfolio with investments across various sectors, including aerospace and defense, healthcare, and business services, indicating a strategic approach to market expansion[303]
PennantPark Investment (PNNT) - 2025 Q2 - Quarterly Results
2025-05-12 20:05
Financial Performance - For the quarter ended March 31, 2025, the investment portfolio totaled $1,213.6 million, with net assets of $488.1 million and a GAAP net asset value per share of $7.48, reflecting a quarterly change of (1.2)%[2] - Net investment income for the quarter was $11.4 million, or $0.18 per share, down from $14.3 million or $0.22 per share in the same quarter of 2024[16] - The company reported net realized losses of $(27.7) million for the quarter, compared to $(31.0) million in the same quarter of 2024[17] - Total investment income for the six months ended March 31, 2025, was $64.9 million, compared to $70.3 million for the same period in 2024[32] - The net increase in net assets resulting from operations was $9,456 million, down from $16,085 million, indicating a decline of about 41.1%[33] - Net investment income per common share decreased to $0.18 from $0.22, representing a decline of 18.2%[33] - The provision for taxes on net investment was $550 million, down from $775 million, reflecting a decrease of approximately 29.0%[33] Portfolio and Investments - The portfolio had net unrealized appreciation of $40.7 million as of March 31, 2025, with a net change in unrealized appreciation of $27.1 million for the quarter[18] - The company invested $176.8 million in the quarter across three new and 52 existing portfolio companies, with a weighted average yield on debt investments of 10.7%[7] - The weighted average yield on debt investments across the portfolio was 12.0% as of March 31, 2025[5] - As of March 31, 2025, the company had three portfolio companies on non-accrual, representing 1.6% of the overall portfolio on a cost basis[5] - The net change in unrealized appreciation on investments and debt was $25,790 million, compared to $32,863 million in the previous period, showing a decrease of about 21.5%[33] - The net increase in unrealized appreciation on non-controlled, non-affiliated investments was $17,918 million, compared to a loss of $1,528 million previously[33] Expenses and Distributions - Total expenses for the quarter were $19.2 million, a decrease from $21.7 million in the same quarter of 2024, primarily due to lower interest and incentive fees[15] - The company declared distributions of $0.24 per share for the quarter, supported by substantial spillover income[5] - Total distributions declared during the three and six months ended March 31, 2025, were $15.7 million and $31.3 million, respectively, compared to $13.7 million and $27.4 million for the same periods in 2024[26] Assets and Liabilities - The company's total assets decreased from $1,389.1 million as of September 30, 2024, to $1,257.8 million as of March 31, 2025[29] - The net asset value per share decreased from $7.56 as of September 30, 2024, to $7.48 as of March 31, 2025[30] - As of March 31, 2025, the company had outstanding borrowings of $314.5 million under the Truist Credit Facility, with a weighted average interest rate of 6.7%[22] - Unused borrowing capacity under the Truist Credit Facility was $185.5 million as of March 31, 2025, compared to $13.5 million as of September 30, 2024[22] - The company had cash and cash equivalents of $32.6 million as of March 31, 2025, down from $49.9 million as of September 30, 2024[23] Strategic Focus - The company plans to rotate equity investments over time to support its dividend stream[5] - The company anticipates continued focus on middle-market companies for investment opportunities, leveraging its established credit platform[34] - The company has no plans to update forward-looking statements made in periodic reports, emphasizing the inherent risks and uncertainties involved[37]
PennantPark Investment Corporation Announces Financial Results for the Quarter Ended March 31, 2025
Globenewswire· 2025-05-12 20:05
Core Viewpoint - PennantPark Investment Corporation reported its financial results for the second quarter ended March 31, 2025, highlighting a decrease in net investment income and net asset value per share, alongside significant portfolio activity and investment performance metrics [1][2][4]. Financial Highlights - Investment portfolio totaled $1,213.6 million with net assets of $488.1 million as of March 31, 2025 [2]. - GAAP net asset value per share was $7.48, reflecting a quarterly change of -1.2% [2]. - Net investment income for the quarter was $11.4 million, or $0.18 per share, down from $14.3 million or $0.22 per share in the same quarter of the previous year [15]. - Total investment income for the quarter was $30.7 million, compared to $36.0 million in the prior year [13]. Portfolio Activity - The company made purchases of investments totaling $176.8 million and sales and repayments of investments amounting to $263.1 million during the quarter [2][6]. - The portfolio consisted of 158 companies with an average investment size of $6.9 million, and a weighted average yield on debt investments of 12.0% [4]. - As of March 31, 2025, the portfolio included 41% first lien secured debt and 29% preferred and common equity [4]. Investment Income and Expenses - Investment income for the three months ended March 31, 2025, was primarily derived from first lien secured debt, totaling $22.1 million [13]. - Total expenses for the quarter were $19.2 million, a decrease from $21.7 million in the same quarter of the previous year [14]. - The decrease in expenses was attributed to lower interest and debt-related expenses [14]. Realized and Unrealized Gains - Net realized losses for the quarter were $(27.7) million, compared to $(31.0) million in the same quarter of the previous year [17]. - The net change in unrealized appreciation on investments was $27.1 million for the quarter [18]. Liquidity and Capital Resources - As of March 31, 2025, the company had $314.5 million in outstanding borrowings under the Truist Credit Facility, with a weighted average interest rate of 6.7% [22]. - Cash and cash equivalents available for investing and corporate purposes were $32.6 million [23]. Distributions - The company declared distributions of $0.24 per share for the quarter, totaling $15.7 million, compared to $0.21 per share in the same quarter of the previous year [27].
PennantPark Investment Corporation Schedules Earnings Release of Second Fiscal Quarter 2025 Results
Globenewswire· 2025-04-03 20:05
Company Overview - PennantPark Investment Corporation is a business development company that primarily invests in U.S. middle-market private companies through various forms of debt and equity investments [3] - The company is managed by PennantPark Investment Advisers, LLC, which has been operational since 2007 and manages $9.8 billion of investable capital [4] Upcoming Financial Reporting - The company will report its financial results for the second fiscal quarter ended March 31, 2025, on May 12, 2025, after the close of financial markets [1] - A conference call to discuss these results will be held on May 13, 2025, at 12:00 p.m. Eastern Time, with access details provided for interested parties [2]
PennantPark Investment: Dividend Cut May Not Happen After All (Rating Upgrade)
Seeking Alpha· 2025-02-24 01:19
Group 1 - PennantPark Investment (NYSE: PNNT) operates as a business development company focused on generating attractive total returns through a diverse portfolio of debt investments [1] - PNNT distinguishes itself from other business development companies (BDCs) by its unique investment strategies [1] Group 2 - The company aims to create a hybrid investment system that combines growth and income, allowing for total returns comparable to traditional index funds like the S&P [1]
PennantPark Investment (PNNT) - 2025 Q1 - Earnings Call Transcript
2025-02-11 19:18
Financial Data and Key Metrics Changes - For the quarter ended December 31, GAAP and core net investment income was $0.20 per share, which is $0.04 below the quarterly dividend [7][25] - GAAP and adjusted NAV increased by 0.1% to $7.57 per share from $7.56 per share [9][27] - The company has $65 million or $0.99 per share of undistributed spillover income [8] Business Line Data and Key Metrics Changes - The portfolio totaled $1.3 billion, with $296 million invested in 12 new and 61 existing portfolio companies at a weighted average yield of 10.6% [9][10] - The weighted average debt-to-EBITDA for new portfolio companies was 4x, and the weighted average interest coverage was 2.2x [10] - The joint venture (JV) portfolio grew to $1.3 billion, with an 18.4% return on invested capital over the last 12 months [12][13] Market Data and Key Metrics Changes - The market yield on first lien term loans appears to have stabilized in the SOFR plus 500 to 550 range [11] - The credit quality of the investment portfolio remains strong, with 2 nonaccruals representing 4.3% of the portfolio cost and 1.5% of market value [14][28] Company Strategy and Development Direction - The company focuses on capital preservation in the U.S. and believes that the core middle market provides attractive investment opportunities [15] - The company has a long-term track record of financing growing middle market companies in five key sectors: business services, consumer, government services and defense, health care, and software technology [16] - The company aims to generate attractive risk-adjusted returns through income while preserving capital [23] Management's Comments on Operating Environment and Future Outlook - Management believes that the current vintage of core middle market loans is excellent, with lower leverage, higher spreads, and tighter covenants compared to the upper middle market [11][20] - The company anticipates that 2025 will provide opportunities for equity rotation and monetization of investments [47][64] - Management is optimistic about the growth of the JV and its contribution to future earnings momentum [13][24] Other Important Information - The company has invested over $563 million in equity co-investments since inception, generating an IRR of 26% [21] - The company has a diversified portfolio with 158 companies across 35 different industries [27] Q&A Session Summary Question: Any commentary about the level of capacity or competition in the core middle market? - Management noted that larger players have exited the core middle market, leaving only a handful of peers, which stabilizes spreads [34][35] Question: What is the appetite for equity co-investments? - Management stated that equity co-investments are evaluated on a case-by-case basis, aiming to capture growth while maintaining a safe loan structure [38][40] Question: How will net investment activity trend in the first half of the year? - Management indicated that PNNT is currently optimized and expects to return to a debt-to-equity ratio of 1.25% to 1.3% in the long term [42] Question: What is the target level for spillover income? - Management emphasized the importance of market opportunities and equity rotation, stating that they aim to maintain a steady dividend stream [46][50] Question: What are the prospects for restructuring the investment in Pragmatic Institute? - Management anticipates some form of restructuring during the current quarter, with potential debt conversion [52] Question: What areas does the company want to ramp up exposure in the portfolio? - Management highlighted health care and government services as key areas, focusing on companies that drive cost containment [56][58] Question: What is the timing and magnitude of monetizing equity investments? - Management aims to reduce equity investments by half over time, with hopes for increased M&A activity in 2025 [64] Question: Are there any notable credit events since the end of the quarter? - Management mentioned that Zips Car Wash filed for prepackaged bankruptcy, which is not material to the portfolio [128]
PennantPark (PNNT) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
ZACKS· 2025-02-11 00:01
Core Insights - PennantPark reported revenue of $34.21 million for the quarter ended December 2024, reflecting a year-over-year decline of 0.4% and an EPS of $0.20, down from $0.24 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $35.17 million by 2.74%, while the EPS met the consensus estimate [1] Financial Performance Metrics - Investment income from non-controlled, non-affiliated investments was $0.58 million, below the average estimate of $0.86 million from three analysts [4] - Dividend income from controlled, affiliated investments was $4.85 million, compared to the two-analyst average estimate of $5.27 million [4] - Dividend income from non-controlled, non-affiliated investments was $0.51 million, lower than the average estimate of $0.62 million from two analysts [4] Stock Performance - Over the past month, shares of PennantPark have returned +1.1%, while the Zacks S&P 500 composite increased by +2.1% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]
PennantPark (PNNT) Q1 Earnings Match Estimates
ZACKS· 2025-02-10 23:21
Earnings Performance - PennantPark reported quarterly earnings of $0.20 per share, matching the Zacks Consensus Estimate, but down from $0.24 per share a year ago [1] - The company posted revenues of $34.21 million for the quarter, missing the Zacks Consensus Estimate by 2.74%, compared to $34.34 million in the same quarter last year [2] Market Comparison - Since the beginning of the year, PennantPark shares have increased by approximately 1.6%, while the S&P 500 has gained 2.5% [3] Future Outlook - The earnings outlook for PennantPark is uncertain, with current consensus EPS estimates at $0.21 for the upcoming quarter and $0.83 for the current fiscal year [7] - The estimate revisions trend for PennantPark is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Financial - SBIC & Commercial Industry, to which PennantPark belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable industry outlook [8]